1 Lakh से 1 Crore Stock Market से कैसे बनेगा?
How much time do you need to convert 1 lakh to 1 crore? If I ask you how much time do you need? We can convert 1 lakh into 1 crore in 1 day. You need 1 lakh to buy the equipments to plan a heist you can go to a bank for a heist. You can even earn more than one crore. The more you are ready to take a risk There's a higher possibility of you getting a higher return. But let's talk realistically, we cannot heist a Bank that is someone else's job. Let's not do it, our job is to think straight. If we talked about realistically How much time do you need to convert 1 lakh to 1 crore? Anything between 2 to 10 years It depends on how much CAGR are we are generating on the 100000. C A G R compounded annual growth rate. It is very important to understand the concept we do not consider this on individual level but the bigger Institutions definitely consider the CAGR it means how much returns are you generating on an average annually Suppose you started with 1 lakh and you generated a return of 50% the first year.
Amazing your capital was one and half lacs at the end of the year. You started the second year with the starting capital of one and half lakh and if you generate another 50% the new starting capital for the third year will be 225000 and if you generate 100% return of the third year then it's a lottery for you then the starting capital for the fourth year will be 450000 it's good to hear 50% 50% hundred percent. But is it possible realistically? Yes can you do it? I don't know. Did I do it? To some extent. Should you aspire for it? Yes you should always inspire and try to achieve your goal. The more we focus on annualised return. that will decide how much time will it take for a capital of 1 lakh to be converted to 1 crore if we say that we are generating a 25% annualized return. There is another problem annualized return does not mean that way generating 25% every year. We might generate 0% in a year and hundred percent in another so that we have an average of 50 % so you should never evaluate yourself each year.
It's like hitting a hammer on your head each year if you're evaluating your performance each year You should evaluate CAGR over a period of time. You started at a point and have reached a point after 4 to 5 years what is your annualized return. It's an average of Return of the past 5 years to calculate CAGR what should I do to convert 1 lakh to 1 crore and in how much time? If you are generating 25% annualized return then it will take you 21 years.
It will take 21 years to convert 100000 to 10000000 if you are generating 25% annualized Returns generating 35% annualised return then you will achieve it in 16 years and if you're generating 50% annualised returns then you will achieve it in 11 years and if you are generating hundred percent annualised return then it will take you 7 years to achieve your goal 1 lakh 2 lakh 4 lakh 8 lakh 16 lakh 32 lakh and finally hundred lakh that's one crore it is possible and you can achieve it. I have roughly managed to achieve it.
Should you target for 100%? Generally, you can keep 100% aspiration when you start with a small capital of 1 lakh but capital increases from 1 lakh to 10 lakh, your risk appetite starts becoming weak so the kind of risk you need to keep for hundred percent returns might not be justified and the risk reward ratio might be favourable should you attempt it? Yes. There's no harm in keeping an aspiration for hundred percent Returns it's a small capital so your loss will also be small if you can not attempt 100% in the small capital then how much will you try it in the agenda is how to get hundred percent returns on a small capital and as my capital size increases the return will also decrease so our attempt will be to generate a 50% annualized return. Start with 1 lakh and get 1 crore in the next 15 to 16 years you might not like what I am saying that it might take 16 years to convert it to 1 crore you need it in the next 5 to 6 years then what is this scheme to convert 1 lakh to 1 crore in the next five to six years I have already told you that you need to generate hundred percent returns for the next seven years you cannot achieve it through straightforward methods, you need to take the crooked way The crooked way in the share market is how much are you leveraging? Leveraging is the most powerful weapon It's like a sword with pointy edges on both sides.
But if you use it properly then it can define your objective properly when you start with 100000 then you need a maximum leverage. It means that you trade in that instrument where the maximum leverage is available let's list down the instruments that we have. First, currency market, USDINR. the currency market is listed in India in NSE, MSEX, and BSE. USDINR where the margin percentage iss roughly 3 to 3.5% if you have 100000 then you can take an exposure for more than 30 times, an exposure of up to 30 lacs if you work properly and you are able to generate 1% monthly of that 3000000, then you can earn upto 30000 monthly it means 360000 annually. You can earn upto 3 lakh 60 thousand from 1 lakh. But is it easy to generate 1% return in currency market nothing is easy, even recording this video is not easy. But you need to put an effort and work properly the first is currency which gives you the maximum leverage and if you want to learn then you need to understand its workings the second is commodities, gold silver copper oil that is traded in MCX.
Each commodity has a different margin there is a roughly 10 to 15 percent margin, the less volatile commodities have less margin and the higher volatile higher margin but roughly there is a 10 to 15% margin requirement. If you have a capital of 100000 then you can take a position of up to 10 lakh if you have taken the position of 10 lakh and your generating 1% return monthly of that 10 lakh then you are generating 10,000 monthly which is 120000 annually. Can
you generate 120000 from 100000? Yes but we need to understand through trading in commodities and how to do it. Thirdly, equity markets let's break it into two parts: derivative Markets and cash market.
When you trade in cash market and take delivery you need to pay the entire amount to take the delivery, so you need to deploy the entire money Although a lot of brokers provide 5 times margin in the cash market. That means that if you take delivery today then you have 4 to 5 days to pay in that amount you can take the leverage as brokers to provide it.
5 times means that you can take delivery of 5 lakh from capital of 1 lakh this is for cash market and if you do intraday then it is the same 5%. You take a position of 500000 with a capital of 100000 if your generating 1% return on that then you are generating 5000 monthly 60000 monthly you can generate 60000 from that 1 lakh. But you need to learn how to consistently generate one person through trading in the cash market let's come to derivatives this is the most complicated. Let's break equity derivatives into two parts futures and options the value of futures is very high. There can be any value between 5 to 10 lakh. If I consider a margin of 20 times in futures then you need at least 1 lakh to work in futures and there can be daily fluctuations of profit and loss so we will not be working in futures. We can not work with 1 lakh in equity futures and we shouldn't do it but we can work in options.
We can either become buyers of options, there is a small premium investment if your fluke is right then you can earn a lot of money through the premium. Option buying is like a fluke the seller on an average of 70 to 80% of the time, and the buyer only on 20 to 25% of the time it is not easy to make money through option buying. People say that the seller is taking the most risk when option selling but I feel that the option buyer is taking more risk as his premium will get over. The time at least is in favour of the seller Can 100000 through option buying worth 1 lakh in one year? Maybe. There's a possibility of 20 to 25% but you need to learn but if you are into option selling and only naked selling, then your margin requirement is high but if you are in two leg or three leg strategy, where you buy one and sell the other buy one cell the other cell the third and by the fourth, the different combinations of options if you are following that then the margin requirement is less but the return is also less I feel that if you work properly in option strategy, then you can earn upto 2% to 4% in options which is 35 to 40% annually.
You can earn upto 150000 to 175000 if you work properly and options let's just quickly revise it. The first is currency. Now you know how powerful is currency it gives you a very high leverage and if you have a good grasp then you have a very high chance of converting 1 lakh to 100000 the next year Second is commodities where that is a good leverage high volatility and more time to trade so there is a good chance that you can make more money there is obviously an associated risk. You have to take the risk to reach to 2 lacs from 1 lakh cash trading in equity market is relatively less risky but the capital deployment will be high so it will take time for 1 lakh to convert to 2 lakh and it might take you one and half to two years but you do not have time as you want to convert 1 lakh to 1 crore in the next 7 years you need to double the money in the next 7 years.
It is possible if you have the right product understanding and Framework understanding let's quickly recap it. Currency is the most leveraged with high return. By currency I mean trading in USD INR 2nd is commodities which is high leverage with a good high return in equity. You can pick up one commodity and start trading to understand how it works third is equity where there is lesser chances of taking a high leverage. There Alice chances through option buying to make money in the net as buyers always hedge and there is higher risk of facing losses. You can take a higher leverage by option selling but it is better to do spread trading as there are less chances of massive losses through spread trading this was my Framework where I told you how to convert 1 lakh to 1 crore. You can pick up whatever you want do you want to 100% zone in the seven years, 12 years, 16 years, 21 years, or 30 years I have told you the risk profile leveraging and now you have to decide which path do you want to take I hope you like the video I really enjoy recording this with you I say everything from my heart do you like the video if you like it and comment if you did not like it so that I understand and make better content next time this is all hidden and I wanted you to know hope you are liking it keep sharing my work and motivating me.
Bye.
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